FIRST RESOURCE BANK ANNOUNCES RECORD ANNUAL EARNINGS; NET INCOME GREW 28% OVER THE PRIOR YEAR

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1 NEWS RELEASE For Immediate Release January 30, 2019 Media Contact: Glenn Marshall, President & CEO FIRST RESOURCE BANK ANNOUNCES RECORD ANNUAL EARNINGS; NET INCOME GREW 28% OVER THE PRIOR YEAR EXTON, PA First Resource Bank (OTCQX: FRSB) announced financial results for the three months and year ended December 31,. Highlights for the year ended December 31, included: Net income grew 28% Earnings per share grew 17% Non-interest bearing deposits grew 27% Total deposits grew 12% Loans grew 13% Total assets grew to over $300 million Acquired the site for the third branch location in Wayne, Pennsylvania Glenn B. Marshall, President & CEO, stated, was a record year for First Resource Bank in numerous ways. The fact that we achieved record net income in was significant as we took advantage of tax savings to invest in the Bank s infrastructure which will benefit us for years to come. marked the 5th consecutive year with loan growth of 10% or greater. Our strategic focus on checking deposit growth was highly successful as total deposits grew 12% during the year with noninterest bearing deposits up 27% for the year. Net income for the quarter ended December 31, was $608,737, which compares to $554,653 for the previous quarter and $401,757 for the fourth quarter of the prior year. Net income for the year ended December 31, was $2,165,207, a 28% increase as compared to the prior year. The increase in net income is primarily attributable to an 11% increase in net interest income and lower income tax expense as a result of the passage of the Tax Cuts and Jobs Act in, partially offset by lower non-interest income, a higher provision for loan losses and higher non-interest expense. Gains on sales of SBA loans totaled $96 thousand in as compared to $197 thousand in. Net interest income was $2,543,645 for the quarter ended December 31, as compared to $2,492,896 for the previous quarter, an improvement of 2%. The net interest margin decreased 7 basis points from 3.85% for the quarter ended September 30, to 3.78% for the quarter ended December 31,. The overall yield on interest earning assets increased 2 basis points during the fourth quarter led by a 6 basis point increase in loan yields to 5.48%. The cost of deposits increased 10 basis points during the fourth quarter to 1.27%.

2 Net interest income for the year ended December 31, was $9,927,714 as compared to $8,960,606 for the year ended December 31,, an 11% improvement. The net interest margin for the year ended December 31, was 3.89% as compared to 3.86% for the prior year. Loan yields increased 20 basis points to 5.38% in, as compared to 5.18% in the prior year, and the cost of deposits increased 26 basis points to 1.07% in, as compared to 0.81% in. Non-interest income for the quarter ended December 31, was $178,337 as compared to $127,457 for the previous quarter and $93,721 for the fourth quarter of the prior year. There were $55,075 in gains on sales of SBA loans recognized during the fourth quarter of, as compared to $12,631 in the prior quarter and none in the fourth quarter of. Non-interest income for the year ended December 31, was $561,266 as compared to $590,349 for the prior year. The decrease in mainly attributed to a decrease in gains on the sale of SBA loans, which were $96 thousand during and $197 thousand in. Non-interest expense increased $63 thousand, or 3%, in the three months ended December 31, as compared to the prior quarter. The increase was primarily due to an increase in salaries and benefits, professional fees, data processing and other costs, partially offset by a decrease in advertising costs. Non-interest expense increased $731 thousand, or 11%, in the year ended December 31, as compared to the prior year. This increase was due to higher salaries and benefits expense associated with a higher headcount and higher advertising, data processing and other costs, partially offset by lower occupancy costs and professional fees. Marshall stated, Included in the increased employee headcount was a dedicated compliance officer and chief credit officer, both of whom will generate long term benefits to the bank. These staff additions are important investments in our infrastructure to help grow the Bank to the next level. Deposits grew $13.6 million from $222.6 million at September 30, to $236.2 million at December 31,. During the fourth quarter, non-interest bearing deposits increased $3.4 million, or 12%, from $28.4 million at September 30, to $31.8 million at December 31,. Interest-bearing checking balances increased $679 thousand, or 7%, from $10.4 million at September 30, to $11.1 million at December 31,. Money market deposits increased $7.5 million, or 8%, from $94.4 million at September 30, to $101.9 million at December 31,. Certificates of deposit increased $2.0 million, or 2%, from $89.5 million at September 30, to $91.5 million at December 31,. During, total deposits increased $25.3 million, or 12%, from $210.9 million at December 31, to $236.2 million at December 31,. During, non-interest bearing deposits grew 27%, interest checking deposits grew 14%, money market deposits declined 6% and certificates of deposit grew 35%. Marshall stated, We are very excited about opening our third branch in 2019 in Wayne, Pennsylvania. The addition of this large deposit market will enhance our ability to grow core deposits. The site has been acquired and the existing building on the site has been completely removed already. We expect a late third quarter opening for this location, dependent on construction timing and possible weather delays as we are building a new structure from the ground up. The loan portfolio grew $10.3 million during the fourth quarter from $234.4 million at September 30, to $244.7 million at December 31,, with growth in commercial business loans, commercial real estate loans, and construction loans, partially offset by a decline in consumer loans.

3 During, the loan portfolio grew $27.2 million, or 13%, from $217.5 at December 31, to $244.7 million at December 31,, with the majority of that growth in commercial real estate loans. The following table illustrates the composition of the loan portfolio: Commercial real estate $ 170,738,479 $ 147,895,320 Commercial construction 20,377,108 19,794,234 Commercial business 31,738,443 28,315,241 Consumer 21,843,647 21,459,111 Total loans $ 244,697,677 $ 217,463,906 The allowance for loan losses to total loans was 0.81% at December 31, as compared to 0.85% at September 30, and 0.81% at December 31,. Non-performing assets consisted of non-performing loans of $2.8 million at December 31,, an 8% decrease as compared to the prior quarter primarily due to the sale of other real estate owned during the fourth quarter. Non-performing assets to total assets improved 18% from 1.12% at September 30, to 0.92% at December 31,. During the year ended December 31,, total stockholder s equity increased $2.1 million, or 9%, from $23.2 million at December 31, to $25.3 million at December 31,, primarily due to net income generated. During the year ended December 31, book value per share has grown 79 cents, or 9%, to $9.62. During the year ended December 31,, total assets grew $33.9 million, or 13%. This growth was primarily the result of $27.2 million in loan growth funded by a $25.3 million increase in deposits and a $6.2 million increase in borrowings.

4 Selected Financial Data: Balance Sheets (unaudited) December 31, December 31, Cash and due from banks $ 5,734,677 $ 2,998,367 Time deposits at other banks 599, ,000 Investments 37,762,190 36,219,930 Loans 244,697, ,463,906 Allowance for loan losses (1,990,253) (1,751,953) Premises & equipment 6,647,166 5,671,763 Other assets 8,996,941 7,353,942 Total assets $ 302,447,398 $ 268,554,955 Non-interest bearing deposits $ 31,788,359 $ 24,987,354 Interest-bearing checking 11,069,325 9,755,198 Money market 101,887, ,500,566 Time deposits 91,456,365 67,658,995 Total deposits 236,201, ,902,113 Short term borrowings 17,000,400 17,997,000 Long term borrowings 18,515,500 11,287,500 Subordinated debt 3,986,097 3,977,603 Other liabilities 1,466,037 1,227,099 Total liabilities 277,169, ,391,315 Total stockholders equity 25,277,468 23,163,640 Total liabilities & stockholders equity $ 302,447,398 $ 268,554,955

5 Performance Statistics (unaudited) Sept. 30, June 30, Mar. 31, Net interest margin 3.78% 3.85% 3.97% 3.98% 3.90% Nonperforming loans/ Total loans Nonperforming assets/ Total assets Allowance for loan losses/ Total loans Average loans/average assets Non-interest expenses*/ Average assets Earnings per share basic and diluted 1.14% 1.21% 1.42% 1.35% 1.39% 0.92% 1.12% 1.30% 1.17% 1.13% 0.81% 0.85% 0.87% 0.85% 0.81% 84.9% 86.1% 86.6% 86.1% 84.3% 2.67% 2.68% 2.72% 2.84% 2.57% $0.23 $0.21 $0.20 $0.18 $0.15 Book value per share $9.62 $9.35 $9.15 $8.97 $8.83 Total shares outstanding 2,628,316 2,626,633 2,625,130 2,623,575 2,621,887 * Annualized Year Ended Year Ended Net interest margin 3.89% 3.86% Return on assets 0.81% 0.69% Return on equity 9.02% 8.08% Earnings per share-basic and diluted $0.82 $0.70

6 Income Statements (unaudited) Sept. 30, June 30, Mar. 31, INTEREST INCOME Loans, including fees $3,297,459 $3,179,807 $3,076,950 $2,849,596 $2,768,463 Securities 124, , , , ,230 Other 37,950 20,705 1,733 2,563 15,593 Total interest income 3,459,616 3,315,762 3,205,315 2,982,300 2,897,286 INTEREST EXPENSE Deposits 739, , , , ,287 Borrowings 108,664 99, ,785 76,810 47,575 Subordinated debt 67,843 67,847 67,486 67,124 67,843 Total interest expense 915, , , , ,705 Net interest income 2,543,645 2,492,896 2,493,870 2,397,303 2,348,581 Provision for loan losses 78, , , ,322 89,233 Net interest income after provision for loan losses 2,465,594 2,383,352 2,302,549 2,262,981 2,259,348 NON-INTEREST INCOME BOLI income 38,315 38,163 37,564 35,040 28,258 Gain on sale of SBA loans 55,075 12,631 28, Other 84,947 76,663 73,441 80,702 65,463 Total non-interest income 178, , , ,742 93,721 NON-INTEREST EXPENSE Salaries & benefits 1,121,757 1,089,077 1,055,702 1,028, ,583 Occupancy & equipment 179, , , , ,539 Professional fees 94,756 84,445 99,919 87,452 90,275 Advertising 34,689 52,808 45,638 62,222 24,802 Data processing 121, , , , ,435 Other 337, , , , ,388 Total non-interest expense 1,888,958 1,825,897 1,800,530 1,795,255 1,626,022 Income before income tax expense 754, , , , ,047 Federal income tax expense 146, , , , ,290 Net income $ 608,737 $ 554,653 $ 520,825 $ 480,992 $ 401,757

7 Income Statements (unaudited) Year Ended December 31, Year Ended December 31, INTEREST INCOME Loans $ 12,403,812 $ 10,601,912 Investments 496, ,450 Other 62,951 62,180 Total interest income 12,962,993 11,087,542 INTEREST EXPENSE Deposits 2,348,864 1,661,999 Borrowings 416, ,637 Subordinated debt 270, ,300 Total interest expense 3,035,279 2,126,936 Net interest income 9,927,714 8,960,606 Provision for loan losses 513, ,316 Net interest income after provision for loan losses 9,414,476 8,607,290 NON-INTEREST INCOME BOLI income 149, ,623 Gain on sale of SBA loans 96, ,873 Other 315, ,853 Total non-interest income 561, ,349 NON-INTEREST EXPENSE Salaries & benefits 4,294,541 3,630,324 Occupancy & equipment 730, ,960 Professional fees 366, ,138 Advertising 195, ,899 Data processing 446, ,185 Other non-interest expense 1,277,305 1,228,459 Total non-interest expense 7,310,640 6,579,965 Pre-tax income 2,665,102 2,617,674 Tax expense 499, ,959 Net income $ 2,165,207 $ 1,687,715

8 ### About First Resource Bank First Resource Bank is a locally owned and operated Pennsylvania state-chartered bank with two full-service branches, serving the banking needs of businesses, professionals and individuals in Chester County, Pennsylvania. The Bank offers a full range of deposit and credit services with a high level of personalized service. First Resource Bank also offers a broad range of traditional financial services and products, competitively priced and delivered in a responsive manner to small businesses, professionals and residents in the local market. For additional information visit our website at Member FDIC. This press release contains statements that are not of historical facts and may pertain to future operating results or events or management s expectations regarding those results or events. These are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts. When used in this press release, the words expects, anticipates, intends, plans, believes, seeks, estimates, or words of similar meaning, or future or conditional verbs, such as will, would, should, could, or may are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are either beyond our control or not reasonably capable of predicting at this time. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements. Readers of this press release are accordingly cautioned not to place undue reliance on forward-looking statements. First Resource Bank disclaims any intent or obligation to update publicly any of the forward-looking statements herein, whether in response to new information, future events or otherwise.